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RE: Welcome to the World Of Decentralized Finance(DeFi).
we have many examples of banks that created Non-Performing Assets(NPA)
Yes, because those are the entities who can be bribed, moreover the trust is governed by the good standing with a person/individual.
In the case of DeFi the trust is governed by code, which can not be bribed or does not get corrupt, that is where it wins.
And you are right, NPA is high in CeFi, in DeFi it is collateralized, a certain buffer is kept below which the smart contracts trigger the liquidation.
Good post my friend. Keep it up.
Stem on.
@sapwood, Thank You for your encouraging comment.
I especially look at the point and if we think about the NPA ratio year by year, I believe this will be one of the success plans that prevent the global economic crisis will be controlled because according to the DeFi projects and collateralized program/code set into the smart contracts.
There will no chance to enter any corrupt peoples, everything will be approved as per the smart contracts program/code which will be equivalent to everyone.
#twopercent #india #affable